France says it opposes GE’s bid for Alstom unit

|By:, SA News Editor

The French government formally declares its opposition to GE’s (GE -0.4%) friendly $13.5B offer for Alstom's (ALSMY, AOMFF) energy assets, saying in a letter to GE that the deal should be reconfigured on a more equitable footing.

The government’s legal means for stopping a deal appears limited, though it could refuse to approve such an investment on national security grounds; economy minister Montebourg notes in his letter that the government was Alstom’s most important customer.

Alstom’s energy units, which make turbines for nuclear, coal and gas power plants, as well as the grid infrastructure to deliver electricity, contribute ~75% of its €20B (~$30B) in the company’s annual sales.